With Treasurer Josh Frydenberg projecting $45 billion in surpluses over the next four years, the Government announced billions of dollars in tax cuts for middle income earners across Australia.
The proposed change
If the Coalition wins re-election, it will introduce income tax cuts.
What it means
If re-elected, the Coalition will introduce income tax cuts of up to $1080 a year for three financial years from 2018-19 for Australians earning between $48,000 and $90,000.
If re-elected, the Government will also cut taxes for middle and high-income earners from 2024 by flattening tax brackets, so those earning between $45,001 and $200,000 will pay a marginal rate of 30%. Workers in this range currently pay a top marginal rate of either 32.5%, 37%, or 45%.
It’s important to remember that many of these policies will need to be passed by Federal Parliament before they come into effect. This might mean that the details of some of these measures could change. We’ll make sure to update you if they are finalised or significantly changed.